WASHINGTON (CNN) -- The executive board of the International Monetary Fund announced Saturday that although its director had "a serious error of judgment" in having an extramarital affair with an employee, he would stay on in his job.

The director, Dominique Strauss-Kahn, said he agreed that he had committed a serious error in judgment and issued an apology.

"I very much regret the incident and I accept responsibility for it. I have apologized for it to the board, to the staff of the IMF and to my family. I would also like to reiterate my apology to the staff member concerned for the distress this process has caused," said Strauss-Kahn in a statement.

The IMF commissioned an independent inquiry after allegations of the affair surfaced. The board said in its statement that the investigations had concluded there was "no harassment, favoritism, or any other abuse of authority by the managing director."

The employee no longer works at the IMF.

The IMF is an international organization of 185 countries whose mission is to promote economic growth and economic cooperation.